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Thursday, April 24, 2008
Will taxes follow home values down?
The Atlanta Journal-Constitution
In one of our earlier discussions, Carrie Smith made a point that bears a follow-up.
Since her family moved into their current home in DeKalb County, six years ago property taxes have been raised five times, she wrote. ” Now that property values are falling, I would like the same enthusiasm from them decreasing my real estate taxes!” She continued:
” I am a real estate appraiser, and have seen properties which are valued by the county 3 times what they are now worth! Since the government is so aggressive in increasing our real estate taxes when values are increasing, I would like to see them now be aggressive in decreasing our real estate taxes with real estate prices declining! “
Maybe it’s just cynicism on my part, but I’d be shocked to discover that home assessments are following the prices down. While some token reduction in assessed value is likely, my guess is that local officials will react to efforts this year in the Georgia General Assembly to cap assessments at 2008 levels. While that legislation did not pass, it will most certainly trigger a response from county officials who now fear that the Legislature will lock them in, prohibiting assessments from increasing more than two or three percentage points.
So, Carrie Smith, none of us should count on lower assessments that follow the market down. But if anybody has evidence otherwise, speak up.
